It’s Tuesday, March 3rd. Here’s your market wrap for the day.
Driving the headlines this Tuesday, Federal Reserve Chairman Jerome Powell announced the central bank cut interest rates by 50 basis points, citing the continued spread of coronavirus and its threat to global economies. Stocks initially traded higher after the surprise Fed move, but then all three major indexes dropped, ending the day lower.
The rate cut—the biggest since the 2008 financial crisis—was designed to soften the economic impact of the coronavirus.
In a news conference, Powell said that the coronavirus outbreak has “disrupted economic activity in many countries” and that it will “weigh on economic activity here and abroad for some time.” He added that the “magnitude and persistence of overall effects on the economy remain highly uncertain.”
The Dow ended the day at TKTKTK, down TKTK%.
In a since-deleted tweet, President Donald Trump said the Federal Reserve should have lowered interest rates even more. “Not fair to USA. It is finally time for the Federal Reserve to LEAD. More easing and cutting,” he wrote.
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